The Cohesion and Agricultural Policy Within the New Financial Framework of the European Union

The European Council, the European Parliament and the European Commission, in an interinstitutional agreement concluded in May 2006 agreed on a new financial framework, thereby fixing the expenditure for the period 2007-2012 for a Union that will then comprise 27 member states. Cohesion policy and agricultural policy account for the two largest items in the budget. In spite of a strong expansion of the agricultural labour force, the share of agriculture will decline in the enlarged union of 27 member states. The cohesion policy funds, on the other hand, will be increased both in volume and on a pro-rata basis so as to accelerate the pace of cohesion.